The invention relates to secure identity card systems, and more particularly, to a failsafe interactive, universal financial transaction system, requiring only one common card.
It is well known that credit card frauds are commonly perpetrated with the existing widely used credit card system, wherein a credit card user has in his possession a small plastic card on which his account number or code with the card issuing organization is printed on the card in raised numerals and letters. This card is constructed to be inserted into a simple, small card reader with a multilayer transaction paper blank with carbon paper between the layers of the blank layers from which several copies of the transaction are made. All the copies have imprinted on them the cardholder's name and account number and other transaction data, such as the monetary amount of the transaction, data and so forth, and he is given one copy as proof of the transaction and its data, while the retail establishment retains several copies, of which one is kept for the record, another one is sent to the card-issuing organization for reimbursing the retail establishment, and there may be other copies. The used carbon papers are discarded. The used carbon papers have on them a clearly visible reversed facsimile of the transaction, including the customer's name, his account number and details of the transaction. The carbon papers are often literally thrown to the wind as they are dumped into the trash receptacles at day's end. Individuals who are intent upon defrauding the system are known to collect and use these carbon papers to reconstruct a customer's name and account number for making false cards, and for filing fraudulent claims or fraudulently obtaining merchandise and services at the expense of the system.
Another problem that is characteristic of the system that is now in use is the proliferation of different types of credit cards that are in use. Typically, a person who travels and entertains to a considerable degree may find it necessary to carry as many as ten or more different credit cards on his person. Clearly, that many credit cards in circulation increases the probability of accidentally losing cards, the need for reporting their loss and cancelling and voiding them. Time used in processing lost cards can be considerable.